Can your business operate and make a profit without your knowledge and management skills, or the skills of your key players?

If the answer is no, then perhaps Key Person Insurance can assist. This covers the loss, perhaps through death or injury, of individuals whose specialised skills, knowledge, client access, or capital ensure the continued success of the business. This could be you, a partner, director, or a specialised employee.

If something happens to a ‘key person’ in the business, the insurance money can help alleviate financial burdens and loss of profits until the business can get back on its feet again.

This can also assist the business with ongoing expenses if something happens to prevent the business running smoothly.

It can often provide benefits for up to 12 months, and could cover regular business expenses to keep it running smoothly. This could cover rent, business loan repayments, rates, utilities, or taxes.

What will happen to your business when you retire, or worse, if you die suddenly?

Even if you’re looking to stay on for longer or have no plan for retirement, a buy/sell agreement ensures the future of the business continues as you wish.

A buy/sell agreement is a legal contract that allows for the transfer of your business to a previously agreed party or person.

The agreement means that there will be minimum disruption, confusion, or dispute if you relinquish control, possibly in the event of death or disability, but even upon retirement.

Importantly, if you wish it will ensure that your family is considered in the transaction so that no one will be left in unfortunate circumstances.

Succession plans should be an evolving process, not a last minute decision